Mr President, Secretary General,
members of the Council of Europe, members of the Knesset, observers
to the Council of Europe, distinguished guests, ladies and gentlemen.

I would like to thank you, Mr President, for the invitation
which was extended to me to address today this esteemed forum, the
Parliamentary Assembly of the Council of Europe. It gives me much
pleasure to be here nearly two years after Chaim Herzog addressed
you, while serving as President of the State of Israel.

May I take this opportunity to salute the Council of Europe
for the central role it has played in promoting the European integration
process based on the values of democracy and freedom, as well as
for its present contribution toward the architecture of Europe and
the safeguarding of human rights and values.

... in the end, we shall arrive at peace. Supported by your blessings, concern and assistance we will do it.

Israel follows with much interest your efforts to create a
stronger and more united continent, and the reshaping of modem Europe.

Although Israel is not an integral part of your continent,
we, as a democratic and western state, feel a profound and strong
affinity for Europe, one which we believe is mutually shared by
you. Our longstanding and steadfast commitment to democratic values
is illustrated by the fact that the special status of observer in
the Council of Europe was given to members of the Knesset, Israel’s
parliament.

Israel fully shares the values which this Council represents.
Therefore, it is incumbent upon all democracies and especially the
nations of the Council of Europe to lead the fight and renounce
the resurging plague of racism, anti-Semitism and intolerance, in
every form, and at every opportunity. In this context Israel cannot
but condemn the growth of neo-nazi movements, and calls upon you,
the Council, vigorously to oppose it.

It gives me much satisfaction to praise the ongoing and fruitful
dialogue between Israel and the Council of Europe. We are delighted
to open the doors of the Knesset to periodic working sessions of
various committees of the Assembly. In March 1992, the Committee
on Culture and Education conducted in Jerusalem its hearings on
religious tolerance in a democratic society. Later we hosted the
Committee on Science and Technology under the same auspices. This
year we expect to host two more committees: the Committee on Parliamentary and
Public Relations and the Committee on Agriculture which will discuss
the topic of desertification.

I come from Jerusalem, the eternal capital of the Jewish people,
the city where the prophets proclaimed their visions of peace, to
tell you that the Government of Israel knows that the eyes of many
millions the world over look towards it in prayer, in great hope,
and in the expectation of a new path, a new momentum. I come from Jerusalem
to tell you that the Government of Israel yearns for peace and is
willing to make peace.

I also want to tell you that we know that obstacles will arise,
that crises might erupt and that we will face disappointment, tears,
and pain. But in the end, we shall arrive at peace. Supported by
your blessings, concern and assistance we will do it.

In the last decade of our twentieth century, walls of hatred
have fallen, peoples have been liberated, and artificial barriers
have disappeared; powers have crumbled and ideologies have collapsed.

It is our sacred duty, to ourselves and to our children, to
see the new world as it is now, to note its dangers, to explore
its prospects, and to do everything possible so that the state of
Israel will fit into the changing face of this world. I think that
in recent years the world has shrunk and no nation can solve its
problems alone, and no country should think that it is isolated.
Each nation should overcome those feelings and act in world and regional
co-operation. We wish our region also to join the movement towards
peace, reconciliation and co-operation that is spreading over the
globe these days.

I have committed myself and my government to the present peace
process and I have expressed on many occasions my hope that 1994
will be a year during which a peace agreement can be reached with
our Arab neighbours. We believe with all our hearts that peace is
possible, that it is imperative, and that it will come.

For much of my life I was a soldier. I took part in Israel’s
wars, as well as in Israel’s march for peace. As one who has been
a soldier, I can still see – as though it were just yesterday –
the rows of fallen comrades lining the road to Jerusalem in our
war of independence; the skeletons of the burnt-out vehicles; the
burning trucks and the thousands of besieged Jerusalemites coming
out towards us to get their sacks of sugar, and rice, and jerry
cans of water.

As one who was a military commander, I know that before we
decided – before I decided – to go into battle, we always saw before
us – and will always see – the eyes of the soldiers asking whether
this is vital, or whether there is not some other choice.

Only one who, year after year, stands facing the thousands
and tens of thousands of silent mourners in the cemeteries on our
memorial day, only one who has seen worlds destroyed and families
devastated, knows just how important peace is to us and to our neighbours.

Nevertheless, as the son of a people who were exiled from
their land and in that exile lost millions of its sons and daughters
in pogroms, in “Aktionen”, in the Holocaust, as the son of a people
to whom the picture of the child with raised hands in the Warsaw
ghetto returns at night, I ask for your understanding and undivided attention.
For us, peace, important as it is, cannot prevail without security.
Israel will be very forthcoming in its quest for peace, but it will
not compromise on its security.

Israel is ready for peace and is willing to take risks and
make dramatic decisions. But any risk or decision should be well
calculated, for hasty actions can bring about irreversible results.

As Chief of Staff during the Six Day War, I promised myself
that I would be the last commander of the Israel defence forces
who would have to face untenable borders, unreasonable lines of
defence and the threat of annihilation. The security of our children
and our security is essential. If we have security, we will also
have peace for all the inhabitants of our country and for its neighbours.

The Government of Israel recognises that in order to put an
end to the Arab-Israeli conflict and for peace to be real and permanent,
it must be inclusive of all parties to the conflict participating
in the present peace process.

The United States has generated a formula which serves both
as a procedural and substantive term of reference to the peace process.
We very firmly believe that there is no need to alter this formula,
for its responds to our long quest to hold direct negotiations with
those Arab parties invited to this process according to the Madrid
letter of invitation. We should not lose precious time.

Our aim is to conclude a set of bilateral peace agreements
in each and every track of negotiations, in order to meet the objective
of establishing comprehensive, just and lasting peace.

The problem now is one of substance. I am convinced that temporary
setbacks and difficulties in our negotiations with the PLO will
not stop us from reaching an agreement. The road to peace is irreversible. Therefore,
I believe that we should persevere in our efforts aimed at implementing
our agreement with the PLO. We do not have any territorial designs
in Lebanon and our problems with Jordan could be solved fairly easily. However,
Lebanon will not budge without Syria’s blessing.

As you know, President Clinton met President Assad in Geneva
on 16 January. Out of this event came a hope that we should explore
carefully to be sure that Syria genuinely means to achieve the kind
of peace and security that we are looking for – a peace that would
last for generations to come, a peace that would put an end to the sufferings,
plight and fear of all the peoples of the Middle East and a peace
that would fulfill Prophet Isaiah’s vision: “Nation shall not lift
sword against nation, nor shall they learn war any more”.

I must acknowledge that our negotiations with Syria have been,
since their beginnings, serious and open, and that progress has
been made. However, I call on President Assad to walk the extra
mile to meet us in the middle of the road for peace, and assure
us a high degree of security about Syria’s long-term intentions.

As for the Palestinians, I sincerely believe that we have
made important progress in that track. The self-governing authority
is meant to be an interim solution for five years, enabling the
Palestinians to take sole responsibility for their lives, while
leaving the negotiations on permanent status to a later stage.

We have also taken steps intended to create a better atmosphere
in the territories and we are willing to take additional steps.
However, the blind and indiscriminate terrorism initiated by Palestinian
extremists – religious fanatics – impedes the speed of progress
in this area.

Those of you sitting here who regard yourselves and others
as friends of the Palestinians and are sincerely concerned should
roll up your sleeves and persuade them to take advantage of this
historic opportunity. At the same time, there are elements among
the Palestinians who are determined to sabotage any steps towards peace.
To them I say: no knife, no stone, no firearm, bomb or land-mine
will stop us. We will continue to strike hard, without flinching,
at terrorists and those who abet them. There are, and will be, no
compromises in the war against terror. We strive for peace, yet
we will continue to fight for our right to live in Israel in peace
and tranquillity.

We are at the start of a long road. We have changed our order
of national priorities – no highest priority for settlements in
the territories. The highest priorities have turned on to a new
path of economic growth and the creation of jobs for hundreds of
thousands of new immigrants and young Israelis. We need Europe to
extend a hand, and we need your support for Israelis and Arabs alike.

Common interest between Israel and Europe is based on the
conviction that there is a link between peace in Europe and peace
in the Middle East. Yet Israel and Europe do not only possess common
values and historic responsibility but bear the joint responsibility
for the shaping of their future.

In my view, Europe should increase its involvement in the
peace-making process in the Middle East. I believe that Europe has
a major role to fulfil on the arduous road to peace. It is already
part of the multilateral talks intended to back up the bilateral
peace negotiations with real substance. Europe has a challenging
task, in contributing to the transformation of the region through
economic development and co-operation, rehabilitating refugees,
developing water and natural resources, solving environmental hazards,
and regulating arms control.

In short, Europe has the laborious task of bringing rivals
from enmity to reconciliation, from boycott to acceptance. Europe
has to add its input to consolidate peace in its real dimensions,
open borders, free movement of goods and people, co-existence and
co-operation.

The road to peace crosses Europe – for without it, it would
remain incomplete. Consequently, Europe should take a stand that
will make it instrumental in the peace process. It should address
the parties with an even-handed and fair approach. I feel an ambivalence
in the European attitude towards Israel. I would like to see more
understanding concerning our political positions, security concerns
and economic needs.

For years we have heard sermons and advice, and we have on
many occasions voiced our frustrations about those, and about Europe’s
attitude in belittling our fears concerning the transfer of technologies,
sensitive fissionable materials and sophisticated weapon systems
to states that vowed our destruction.

For more than forty years, the Arab boycott has been a tool
in the war against Israel, even though it contradicts the fundamental
principle of free trade, as espoused in GATT and in our joint free
trade agreement. European states have all deplored its existence,
though only a small minority have taken concrete steps to eliminate
it.

Two years ago, when the Madrid peace process began, Israel
made concessions in return for the abolition of the boycott. No
one then would have dreamed that after the progress achieved in
recent months, the boycott would still be used as an illegitimate
weapon against Israel. Europe’s resolve and our joint co-operation
can halt such actions once and for all.

It is precisely at this juncture, when Israel and the European
Union are about to begin official talks to renegotiate the 1975
free trade agreement, that we must bridge the gaps and mend fences
between us. In any new agreement we must take account of the constantly
changing nature of our relations, so that in twenty years time an
agreement will be just as relevant as when it was drawn up. Therefore,
a new agreement must include the potential to evolve and to incorporate
new dimensions.

Israel’s trade links with Europe have developed greatly as
a result of our trade agreement and through our adoption and adherence
to the values of free trade that you espoused. However, today we
find that the major trading blocs do not always abide by the standards
that they demand of others.

Our mutual trade links are extensive. Last year more than
60 % of our imports were from European countries and more than 38%
of our exports were to you. Moreover, it must not be forgotten that
Israel has a large trade deficit with Europe, which was $7 thousand
million in 1993. That is a clear indicator of the benefit to Europe from
our close economic links.

Any final agreement must take account of Israel’s ability
to contribute to the economic activity of Europe, as well as our
special needs. Our relatively small and dynamic economy complements
yours, rather than competes with it. Israeli corporations excel
in their ability to innovate, due to our proven research and development
capabilities and our highly-skilled work force. Those abilities
will continue greatly to benefit European companies.

Moreover, as the Middle East’s economy develops, Israel’s
advanced financial services sector will offer important services
to European companies seeking to enter and to expand in the region.
It is precisely because you recognise the importance of the Middle
East to Europe that Israel’s role as a stabilising factor and locomotive
for growth in the region cannot be minimised, and it is in an era
of peace that European interests will require an Israeli economy
that continues to expand and to develop. Israel’s geographical location
should not stand in the way of deepening economic ties between Israel
and Europe.

We in turn have special needs that we expect you to take into
account. Our agricultural sector is very different from that which
existed when the old free trade agreement was reached. We recognise
that agriculture is a very sensitive subject for us both. However,
just as Israel is expected to be flexible in that respect in its negotiations
with the Palestinians in the creation of an open economy between
them and us, we need similar flexibility on your part.

Similarly, our technological input to products, though often
small, nevertheless significantly upgrades their quality. However,
rigid rules make it difficult for us to trade in those goods, to
our joint loss. You must recognise that problem, and jointly we
must reach more accommodating solutions.

My government greatly appreciates the recent decision taken
by the Council of Ministers of the European Union to start formal
discussions with us, to arrive at a new agreement. It is our hope
that the new agreement, once signed, will deepen the ties between
Europe and Israel and the whole region.

In the light of our historic relationship and the challenges
of the present, Europe should enable Israel to take its appropriate
place in the new European structure that is being forged before
our very eyes.

Distinguished members, I sincerely believe that a strong Israel,
reassured in its support, will be magnanimous in the negotiations
with its Arab partners. Therefore, Europe has an essential role
to play, from which it cannot escape, because it is part of its
historical tradition, and thus an irrevocable part of its destiny.

This is our declaration of intent: this is the vision that
we wish to transform into reality. Let me share with you the pledge
that 1994 will be a year of peace, not a year of missed opportunities.
I will do my very best to reach this ultimate goal.

Everything that I have stated here has been said in good faith
and emanates from a profound desire to set out on a new path and
to shake off the dust of old concepts. Our entire policy can be
summed up in a verse from the Book of Books, as it is written in
Ezekiel: “I will make a covenant of peace with them, it will be
an everlasting peace”.

We believe that that will make everything possible. Our goal
is peace and security for Israel and all the countries of the region.
Thank you very much.

Mr Rabin,
thank you very much for your speech, which was of great interest
to the Assembly.

Mr Rabin has indicated his readiness to answer spontaneous
questions from members of the Assembly, for which I am very grateful.
A large number of members have already expressed a desire to ask
Mr Rabin a question. In order to take as many questions as possible,
I shall not allow any supplementary questions. I would like to remind
members that their questions should not last more than thirty seconds,
should be relevant to the Council of Europe’s area of responsibility
and should be genuine questions. I call Mrs Durrieu.

Mrs DURRIEU (France) (translation)

Mr Prime Minister,
allow me to salute your combat and that of your government. Achieving
peace and security in 1994 is your objective, and we truly hope
that you will achieve your objective.

I wanted to ask you exactly what kind of aid you are expecting
from Europe, but you have already answered this by stating your
specific needs.

What role can Europe in general and the Council of Europe
in particular play in the establishment of fully democratic structures
in the future sovereign territories of Palestine?

Mr Rabin, Prime Minister of Israel

On the second part of your question,
I do not believe that democracy can be imposed. It must derive from
a decision of the people, which is relevant to the change from a
lack of democracy to democracy. As you know, under the agreement
on the declaration of principles between the PLO and Israel, the
Palestinian Council must be elected. We will do whatever can be
done to facilitate that by the redeployment of our forces from the
central, densely populated areas. Last week, we asked the Palestinians
and the PLO whether they wanted to prepare for overall elections
to the Palestinian Council for the municipalities, but we can only
offer: we cannot impose. As many European countries have good relations with
the PLO and the Palestinians, they should try to encourage them
to become democratic. It would not be advisable for Israel to be
the main party demanding that because it would look like an attempt
either to patronise or to impose. If you do it, I hope that you
will succeed.

Mrs BAARVELD-SCHLAMAN (Netherlands)

Does the
Israeli Government have a timetable for releasing the Palestinian
prisoners, which would be seen as an important confidence-building
measure towards the Palestinian people.

Mr Rabin, Prime Minister of Israel

We have made it clear in our negotiations
with the Palestinians and the PLO that release will be linked to
implementation of the declaration of peace – at least for the Gaza-Jericho
phase. Of course there are certain problems vis-à-vis those who
have assassinated Palestinians and Israelis. What will happen to
them? Generally speaking, we are ready and we have made it clear
that release will be related to reaching and implementing an agreement
and that it will apply only to those who say, “We support peace”
and not to those who proclaim that, once released, they will join
a terrorist organisation such as Hammas or Islamic Jihad and that
they will continue to use terror as the main means of undermining
the agreement between the PLO and Israel.

Mr SCHWIMMER (Austria)

Israel is the
only real democracy in the Middle East with high economic and social
conditions. I am convinced of the need to develop similar democratic,
social and economic standards in all states of the region, and Israel
can be more than a good example. How can, and how will, Israel support social
and economic development in the self-governed Palestinian territories,
and how can Europe help?

Mr Rabin, Prime Minister of Israel

In the negotiations about the implementation
of the declaration of peace, we must be very careful. We are, undoubtedly,
more developed economically and socially than the Palestinians.
But as I said before, we should not appear to be dictating to them
or patronising. All that we can do is offer it to them.

I believe that there are enough very capable Palestinians
to run their affairs. We can find good businessmen, scientists and
organisers among the Palestinians. I shall give you an example.
In the Gaza Strip, we have thirty-five departments of the civil
administration which for all practical purposes run the life of
the Palestinians. All those departments are headed by Palestinians
from Gaza. If they are allowed, and there is policy to guide them,
they will continue to run the development of the Gaza. But it is
not up to us to dictate to the PLO that these people must remain
in their positions. It is their decision.

We are more than ready to co-operate. In the Paris talks,
where economic negotiations were conducted between representatives
of the PLO and Israel, we offered the Palestinians free economic
choice and whatever that means. There were demonstrations by the
farmers because they were afraid that the Israeli market would be
flooded with certain agricultural products from the Palestinians.
We are ready for any kind of co-operation that will lead to the
advancement of their economic and social capability.

At present, we have to look at it as negotiations between
partners, not negotiations with one side having the upper hand.
In every meeting that I had with Chairman Arafat, he used to say
that I had the upper hand and therefore I had to make decisions.
We do not look at it in that way. It is its decision. We are ready
to co-operate.

In our relations with Europe, we ask you to assist the Palestinians.
Once an agreement is reached, you must assist them. For me as an
Israeli, without economic and social development for the 750000
Palestinians in the Gaza Strip, and after waving the flag for six
months, the whole fragile structure might be in danger. The Israelis are
still interested in it. Please assist them. We do not ask for financial
aid from Europe, only a fair chance of competition.

Mrs HALONEN (Finland)

The world community
welcomes every effort to end the destructive and painful conflict
in the Middle East, and wants to believe in the sincerity of the
main parties in the peace process. Against that background, how
can it be explained that new settlers are still moving into the
territories occupied by Israel since the 1967 war?

Mr Rabin, Prime Minister of Israel

As you know, the present Government
of Israel has changed not only its position on the terms for peace
and finding the partners for peace vis-à-vis the former governments
of Israel; it has changed the order of national priorities. Today,
we see the order of national priorities as follows: education, the
transportation infrastructure and the fight against unemployment.
Putting money into the territories went down tremendously in the
order of our priorities. At the same time, there can be no law that prevents
anyone from settling where there is an Israeli settlement. There
is much less government assistance, if any, for that type of development.

Mr SOLE TURA (Spain)

During the international
symposium on trans-Mediterranean interdependence and partnership
organised in Rome last week by the North-South Centre of the Council
of Europe, the Israeli delegation proposed that, in order to make
real progress in trans-Mediterranean cooperation in view of the
new circumstances resulting from the peace process, a trans-Mediterranean
component could be added to the Council of Europe, especially through
its North-South Centre. How do you see the possibilities in that
respect?

Mr Rabin, Prime Minister of Israel

If we speak only of co-operation
between Mediterranean countries, the issue is different. The Mediterranean
does not only include countries with democracies. There are countries
on the northern shore of Africa bordering the Mediterranean which
do not have democracy. We are for all forms of international co-operation
without any discrimination. I doubt whether Algeria or Libya, which are
countries on the Mediterranean shore, would like to see Israel as
part of such an organisation. However, the Israelis are ready.

Mr COLOMBO (Italy) (translation)

The agreement between
Israel and the PLO is a great event, but the agreement between Israel
and the Holy See is also a turning-point in two thousand years of
history. This bilateral agreement does not mention Jerusalem, the
Holy City, or other holy sites, not even by name. Could you indicate
what the Israeli Government thinks about the issue of Jerusalem,
possible changes in the legal status of the city and the possibility
of international guarantees, and what arrangements, if any, exist
under the agreement?

Mr Rabin, Prime Minister of Israel

Jerusalem must remain united under
Israel’s sovereignty and our capital for ever. Since the end of
the 1940s, there were two capitals that were divided by walls, minefields
and people with machine-guns – Jerusalem and Berlin. We thank God
that both of them united. I believe that one must distinguish between
Jerusalem as a united and living city, and the fact that Jerusalem
is holy to the three religions. I refer especially to Christianity
and Islam. Since 1967, there has been free access and free practice for
Christians and Muslims. They can do what is needed by their religion.
As you know, the holy shrines in Jerusalem for the Muslim and for
the Christians are run administratively by the various religions.
The Holy Sepulchre is run administratively by the Christian Church.
The holy places for the Muslims – the two mosques – are run by the
High Council of the Muslims. We do not interfere in the administration
of the holy shrines. We cannot draw a line between what is needed
for the various religions – their administration and their beliefs
in terms of free access, free practice and independent administration
of the holy shrines – and the change in the status of Jerusalem.

Since 1967, we have done what is needed for every Christian
and for every Muslim. Some 200 Libyan pilgrims want to come to pray
in the mosques in Jerusalem. Regardless of the policy of the Libyan
Government, we say that whoever wants to make a pilgrimage and from
whatever country, he may do so. If Gaddafi decides tomorrow to make
a pilgrimage to the mosque in Jerusalem, I promise him safe passage
to Israel and back to Libya. That is the principle that guides us.

We more than appreciate the Vatican’s decision just a month
or six weeks ago openly to sign a new chapter in the relations between
the Catholic Church and the Jewish people – between the Vatican
and the Jewish state of Israel. I believe that that will elevate
our relations and will clear up many misunderstandings of the past.
I believe that it will create entirely different relationships between
Catholics and Jews, and between the Vatican and Israel.

Lord MACKIE OF BENSHIE (United Kingdom)

I am a
Scot who was brought up on the Old Testament. I have always found
it easy to identify with the children of Israel standing in the
midst of the Philistines. You are now, Prime Minister, entering
a phase that will obviously be very difficult. What steps are you
taking to ensure that your young soldiers are able to stand up to
the provocation that people who want to wreck the moves will undoubtedly
give them?

Mr Rabin, Prime Minister of Israel

Unfortunately we have a long history
of wars. We have experienced six wars and there has been no real
day of peace between them. The bulk of our national servicemen are
reservists. I believe that they understand the situation. They are
motivated to do what is needed to ensure that Israel will be secure
and to give maximum security to the Israelis.

Those soldiers believe that their government will not go to
war unless there is no choice. What is demanded from them is understood
by most of them to be vital to the security of Israel and to the
security of the Israelis. I believe that that realisation gives
them the motivation and the readiness to do everything that is needed,
and, sometimes, to sacrifice their lives in fulfilling that mission.
That is how I see it. I believe that we are fortunate with our young
generation. They have individual and collective responsibility for
security.

Mr ANTRETTER (Germany) (translation)

Prime Minister,
the policy you are pursuing encourages us to hope that in the next
few months new prospects will open up for peace in the entire Mediterranean
area. May I ask you, against the background of these developments,
whether your government might also approve in the medium term the establishment
of machinery, similar to that already existing within the framework
of the CSCE in Europe, for the prevention of conflicts, confidence-building
in the military field and the peaceful settlement of disputes?

Mr Rabin, Prime Minister of Israel

The best confidence-building measure
today would be to reach agreement about Gaza and Jericho first and
then to start to implement that agreement. Sometimes too much attention
is given to side issues instead of tackling the core of the problem.
We should find ways to change the realities. The whole idea of the
interim agreement is to create an interim period in which the Palestinians
will have something that no one except Israel has given them. The
Jordanians did not offer them that when they occupied the West Bank.
The Egyptians did not offer them that when they occupied the Gaza
Strip. We offered that to them. You want elections? We believe in
elections. We say to the Palestinians, take responsibility for running
your lives as long as that does not interfere with the Israelis
and with the security of Israel.

Let us try to change the realities. Let us try to create the
new realities with more confidence. That will reduce the suspicions
and hatred that have been accumulated in the past. Let us tackle
the core of the issue. Let us change the realities. The Palestinians
can take responsibility for their daily lives, for their education,
for their housing, for jobs and for economic development, and we
ask them to do so. Confidence-building measures are important when
there is no agreement in principle for a more dramatic change. Let
us work for that change and let us implement it.

Mr INÖNÜ (Turkey)

I express my appreciation
for the peace process. Assuming that the peace process ends with
success – we hope – how will that change Israel’s foreign policy
with respect to the Arab world? Do you foresee the organisation
of a group such as the CSCE, which might be called to the CSCEM?

Mr Rabin, Prime Minister of Israel

First, the most important thing
is to achieve peace. Allow me to elaborate. In the context of the
negotiations started at the Madrid peace conference, everyone is
talking about a comprehensive peace. That is not correct. It is
peace only between the four neighbouring Arab countries and a movement
towards a solution of the Palestinian problem. But there are other
Arab countries: Saudi Arabia, the sheikdoms and princedoms, Morocco,
Algeria and Tunisia. Comprehensive peace in the regions will mean peace
with all the Arab countries, or at least some of them. What we now
mean by a comprehensive peace is peace with the inner circle of
Arab countries neighbouring Israel. Let us achieve that first. If
we do that, there will be the possibility of regional co-operation
and I believe that it will then be easier to deal with economic cooperation
related to water supply, transportation, electricity supply, tourism
and so on. But it cannot be done while boycotts exist and it cannot
happen until we have made a major move vis-à-vis the Palestinians
and, perhaps, the Syrians.

Mr JASKIERNIA (Poland)

As you know, Mr Rabin,
several international observers now believe that the East-West confrontation
is no longer the problem; it is the growing conflict between the
rich North and the poor South. What are the attitudes in your region,
and what do you think the international community should do? In particular,
what role would the state of Israel like to play?

Mr Rabin, Prime Minister of Israel

I believe that there are many problems
in the world and there are many different classifications for the
different confrontations. I do not know precisely what is meant
by the South or the North. Are the rich oil-producing countries
part of the North or the South? It is more a question of different
cultures, traditions and experience.

As I said, democratic systems cannot be imposed or imported.
For several years, I served as Israel’s ambassador to the United
States. The average American believed that if you brought a good
constitution to countries in what you called the southern part of
the world, once they had legislated there would be a democracy.
I used to tell the Americans, “Do not forget that democracy is a
product of hundreds of years of cultural, mental and economic developments
in Europe and, to the best of my knowledge, you Americans brought
democracy with you from Europe. I am not aware that before you came
to the United States, the people who lived here had invented democracy.
It is a prolonged process of change”.

It will take a long time and a combination of systems to change
the present economic situation. There must be a change in basic
attitudes and people must understand the need to move towards local
community and family systems. There is no magic solution to the
plight of all the countries in the South; the process will be a
long one. Israel has had some experience, in its limited way, of
working together with some Asian and African countries and peoples.
We cannot start to change without a major financial effort, and
that change will not be effective unless the leaders of those countries
are committed and capable.

Mr FICO (Slovakia)

We have all
observed with deep satisfaction the efforts to establish new relations between
the post-communist countries and Israel. There has even been enough
political change in Slovakia, for instance, to allow us to apologise
for the mistakes of history and to take appropriate steps to minimise damage
and injustice. One example is the law on the restitution of property
to the Jewish authorities. In that context, what do you believe
will be the possible co-operation between those new member states
of the Council of Europe and your country?

Mr Rabin, Prime Minister of Israel

Israel was pleased to host a visit
of your Foreign Minister a few weeks ago. The Jewish people have
a long history of relations with Slovakia, and we appreciated very
much the courage of your country’s leadership to do what you described.

Israel is the only observer to this distinguished Organisation.
I hope that, in the future, even with the status of observer, Israel
will become more involved in the activities of this Organisation.
I hope that that will be an incentive to other countries in the
region to change their ways of life, to become more democratic and
to have the right to be observers here, too.

THE PRESIDENT (translation)

In fact,
the Holy See has similar status, but that cannot be reflected in
the Assembly because thus far it has no parliament.

Mr VRETTOS (Greece)

Your decision
to contribute towards a break-through in the peace process in the Middle
East has been very much appreciated. But it is obvious that there
are still many problems and that two sides – internal and external
– have to be confronted. Syria has announced the possibility of
a referendum, which appears to be not only democratic...

THE PRESIDENT

Thank you.
Would you like to answer the question, Mr Rabin?

Mr VRETTOS (translation)

Please
allow me to ask my question.

THE PRESIDENT (translation)

No, or there
will be no time for other questions. Would you like to answer the
question, Mr Rabin?

Mr Rabin, Prime Minister of Israel

While it is true that I made a decision,
it remains to be legislated. To hold a referendum once there is
peace with Syria will call for significant withdrawal from the area
under our control. I believe that this issue is very critical –
whether or not to make peace, and if we can make peace under our
own conditions. Therefore I feel that this process can take place
under the Israeli system, in other words, in a democratic country.
We watched what happened in Europe, and even in Britain, where there
had never been a referendum until it joined the European Economic
Community. In France and Denmark referenda were held about the Maastricht
agreement. I am ready to organise one in Israel, and President Assad
will decide about a referendum in Syria.

Mr FRANCK (Sweden)

My question is
about the peace process and the implementation of human rights.
It is worrying that there is opposition to your government on the
subject. Can those who oppose it stop the peace process and improvements
in human rights? Also, what new concrete steps are you ready to
take on improvements in human rights.

Mr Rabin, Prime Minister of Israel

We are, in the territories, under
the Geneva Convention. There is no doubt that we have to use measures
to cope with terrorism. The fact that no Israeli government has changed
the status of the territories for twenty-six years and that they
have left their future open until we have negotiated peace with
our neighbouring countries, the Jordanians, Egyptians and Palestinians
shows that Israel did not intend to annex them in any unilateral
way. There is a military government in the territories and – under
our military government – we try to use whatever means we consider
legal. As you know, even though they are not part of the sovereign
soil of Israel, our Supreme Court can judge on and must respond
to any complaint by any Palestinians or residents of the territories.
Therefore, I cannot say that the kind of laws that exist in Israel
also exist in the territories because we did not annex them and
they are still under military government. The solution will be found
once we have first reached an agreement with the Palestinians on Gaza-Jericho,
but the issue will still be there and we shall see whether they
will be able to maintain human rights as we have done under military
government.

Mr KELAM (Estonia)

Peaceful settlement
is of necessity the outcome of compromise. How serious an obstacle
to the final settlement are the groups on the various sides who
are unwilling to compromise? Furthermore, what can the small nations
of Europe that are not engaged militarily do to contribute to the
peace process in the Middle East?

Mr Rabin, Prime Minister of Israel

Israel is a democracy and therefore
I would not deny that there are parties who oppose my policy and
that of the Israeli Government. However, in a democracy the majority decides.
In accordance with the democratic system of every country, there
are some divisions about the government’s decision to sign the declaration
of principles with the PLO and the change in policy, which brought
about mutual recognition between Israel and the PLO. I shall be
frank. At present, out of 120 members of our Knesset, sixty-one
support my policy – I have a majority of one – six are wavering
and fifty-three are against, which shows that there is a division.
There is no doubt as to whether, when a policy is related to key issues
such as peace vis-à-vis security, as I have described, there is
a need for a referendum if the peace treaty with Syria calls for
a significant withdrawal by Israel. There are differences in a democracy
because the basis of democracy is that the majority decides. What
can small European countries do? I do not believe that one can pick
certain items for each country. It would be preferable for the European
Council or the Council of Europe to work together. I believe that
the impact will be much more important and influential and it is
therefore preferable to approach the matter from the point of view
of all the members of the Council of Europe.

Mr JUNG (France) (translation)

Prime Minister,
I too would like to thank you for this message of hope to our Assembly, but
I would particularly like to congratulate you on your courageous
efforts to establish closer relations with the Palestinian authorities.

You are now in Strasbourg, this symbolic city which was a
bone of contention for decades but has now become the epitome of
a reconciled Europe.

Do you think that Jerusalem will be able to play the same
role in the future, both from an economic point of view and as regards
the cultural life as a whole in the Middle East?

Mr Rabin, Prime Minister of Israel

As someone who was born in Jerusalem
seventy-two years ago and being Jewish, I believe that Jerusalem
is holy to the three religions of Judaism, Christianity and Islam.
The name Jerusalem means the city of peace because it derives from
the Hebrew words erou shalom which means, “we seek peace”. In three
years we shall celebrate the fact that it is 3000 years since the
establishment of Jerusalem by King David.

I hope that circumstances will be as you described and that
the roots of all three religions – and especially of Judaism and
Christianity – will serve that purpose. I do not see any conflict
between the role played by the Council of Europe and the fact that
it is located on the sovereign soil of France. I see no reason why
Jerusalem cannot serve the Middle East in the way that was described
today, despite the fact that it is part of the sovereign soil of
Israel.

THE PRESIDENT (translation)

Thank you,
Prime Minister. Some of our colleagues will be disappointed that
there is no more time available for questions but you, Mr Prime
Minister, have responded to most of the points that were raised.

A late friend of yours, Prime Minister, and of mine and of
the Assembly – Willy Brandt – once said that peace is not all but
that without it, nothing is possible. We leave you with that inspirational
thought. You asked for our blessing and understanding, and you have
them. Above all, you have our friendship and our unreserved political
commitment to peace, common values and solidarity.

I wish to present you, Prime Minister, with the medal of the
Council of Europe – but not in my office or after lunch, which is
the usual procedure when we have guests who deserve to receive that
medal. Instead, I wish to present it to you now, before the Assembly.
I repeat something that I said to you in my room: “This is a great and
good day for us all – it is a ‘kosher day’.”